Ranking Member Edward J. Markey, along with Senators Ron Wyden and Jeanne Shaheen, introduced legislation on February 23 to require full refunds of tariff taxes imposed by the Trump administration. The move follows a recent U.S. Supreme Court decision that struck down the tariffs in a 6-3 vote.
The proposed Tariff Refund Act of 2026 would mandate that nearly $135 billion collected in tariff revenue be returned to businesses and consumers, with interest. The bill aims to prioritize small businesses in the refund process and eliminate administrative hurdles for those seeking repayment.
“Trump’s illegal tariff taxes cost small businesses, consumers, and families nearly $135 billion. That money must be repaid immediately. For small businesses with little to no resources, this refund process can be extremely difficult and time consuming,” said Ranking Member Markey. “That is why I am proud to introduce the Tariff Refund Act with Senators Wyden and Shaheen. Our bill would require the tariffs to be refunded and level the playing field—putting small importers and small businesses first in the refund process and eliminating needless administrative barriers. It’s Main Street and working families that paid Trump’s tariff taxes, and we must ensure they get their money back—not big corporations.”
Senator Wyden added: “Trump’s illegal tax scheme has already done lasting damage to American families, small businesses and manufacturers who have been hammered by wave after wave of new Trump tariffs. Senate Democrats will continue fighting to rein in Donald Trump’s price-hiking trade and economic policies. A crucial first step is helping people who need it most, by putting money back in the pockets of small businesses and manufacturers as soon as possible.”
Senator Shaheen stated: “President Trump’s reckless and chaotic tariffs have only caused uncertainty and pain—raising prices on consumers and businesses when they can least afford it. Now that the Supreme Court has made it clear that the President did not have the authority to unilaterally impose sweeping emergency tariffs, it’s critical that American families and small businesses get the relief they need. That starts by President Trump refunding the illegally collected tariff taxes that Americans were forced to pay.”
The legislation is co-sponsored by several other Democratic senators including Chuck Schumer, Ben Ray Luján, Mazie Hirono, Chris Coons, John Hickenlooper, Angus King, Angela Alsobrooks, Andy Kim, Maria Cantwell, Jacky Rosen, Dick Durbin, Tim Kaine, Alex Padilla, Mark Warner, Adam Schiff, Richard Blumenthal, Patty Murray, Chris Van Hollen, and Michael Bennet.
While previous guidance from the Trump administration acknowledged an obligation to refund unlawfully collected duties with interest if found unlawful by courts or international panels such as WTO or NAFTA/USMCA tribunals (though not referencing specific procedures), there remains uncertainty over how these refunds will be processed or prioritized.
Under this new bill:
– U.S. Customs and Border Protection (CBP) would be required to issue refunds for all unlawfully imposed tariffs under IEEPA.
– CBP would have 180 days after enactment of the law to complete all refunds.
– Interest must be paid on refunded amounts.
– Small business claimants would receive priority treatment.
– CBP would coordinate with the Small Business Administration (SBA) for technical support.
– Congress would receive regular updates every 30 days until all refunds are processed.
– Guidance would also be provided for addressing duty drawback claims.
– There is an expression of congressional intent encouraging importers or wholesalers receiving refunds to pass them on to customers.
Markey has previously advocated for relief measures aimed at supporting small businesses affected by these tariffs through various legislative proposals since May 2025.
The Senate Small Business and Entrepreneurship Committee plays a role in supporting informed fiscal decisions related to national priorities (official website) while providing comprehensive policy options on federal budget components (official website). The committee also contributes through budget resolutions as part of its work within Congress (official website).
The committee was established under provisions set forth in 1974 via Congressional Budget legislation (official website), offers nonpartisan analysis through oversight of agencies like CBO (official website), features Lindsey Graham as chairman alongside Jeff Merkley as ranking member (official website).
